A THRESHOLD-VAR APPROACH TO ASSESS THE EFFICACY OF THE EU IMPORT REGIME

Abstract

The efficacy of the entry price policy in the European fresh fruits and vegetables sector is not well understood. We investigate econometrically the efficacy of the import policy. The analysis estimates a threshold vector autoregressive model using data on imports the main competing country on the European Union domestic markets. Our results allow concluding on the insulating effects induced by the entry price system. We argue that the quota restrictions are likely to provide larger contribution to the domestic market stabilization. Policy implications are provided.

Keywords

• Non-tariff barriers
• trade
• entry price
• threshold models
• integration
• Mediterranean area